The Problem With Total Market Funds – And How To Get Real Diversification

While the S&P 500 Index is made up of 500 companies (and thus would seem to offer strong diversification), it is dominated by a handful of large-cap growth stocks. The Total Market Index, meanwhile, includes large-, mid-, small-, and micro-cap stocks. As a result, many see total market funds as a better, more diversified alternative to S&P 500 funds. In today’s article, however, the author shows why, in fact, total market funds are not that much better than S&P 500 funds – and outlines an alternative strategy to truly boost your diversification (and your returns). For more, CLICK HERE.